Question
Question 9 An investor has a 2-stock portfolio with $150,000 invested in Herbert Manufacturing and $50,000 in Biggers Corporation. Herberts beta is 1.20 and Biggers
Question 9
An investor has a 2-stock portfolio with $150,000 invested in Herbert Manufacturing and $50,000 in Biggers Corporation. Herberts beta is 1.20 and Biggers beta is 0.90. The risk-free rate is 3.0%, and the expected return on the market is 7.0%. The expected return of the portfolio is:
| a. 7.5% | ||
| b. 7.32% | ||
| c. 7.8% | ||
| d. 8.2% | ||
| e. 8.5% | ||
| f. 9.6% |
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Corporate Finance Principles And Practice
Authors: Denzil Watson, Tony Head
1st Edition
0273630083, 978-0273630081
